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U.S. Dollar Moves to Three Week High

The dollar rose to a three-week high against the yen after the Federal Reserve ended bond purchases because of an improved labor market.

The greenback held its biggest gain in almost four weeks against major peers as traders pushed up odds for an interest-rate increase next year even as the Federal Open Market Committee maintained its pledge to keep borrowing costs low for a “considerable time.” The New Zealand dollar held a decline after the Reserve Bank signaled it will keep rates on hold for an extended period. Bank of Japan Governor Haruhiko Kuroda will appear in parliament today, ahead of a monetary policy meeting tomorrow.

“Fed policy makers have dispelled any doubts that they will normalize policy,” said Imre Speizer, a markets strategist at Westpac Banking Corp. in Auckland. “The U.S. currency is back on its uptrend.”  The dollar rose 0.2 percent to 109.07 yen at 11:05 a.m. in Tokyo, after touching 109.12 yen, the highest since Oct. 7. It added 0.1 percent to $1.2624 per euro after climbing 0.8 percent yesterday. Japan’s currency was at 137.66 per euro from 137.56.

Bloomberg [1]

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